Amazon (AMZN) - Get Report shares rose more than 10% after hours Thursday after the company reported fourth quarter results that topped analyst estimates as the company’s cloud computing segment, in particular, beat expectations.
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The Seattle-based company reported fourth quarter earnings of $6.47 per share on revenue that jumped 21% year over year to $87.4 billion.
Analysts were expecting the company to report earnings of $4.03 per share on revenue of $86.02 billion.
For the first quarter of 2020, the company expects net sales to grow between 16% and 22% and land between $69 billion and $73 billion. Wall Street is expecting revenue of $71.64 billion.
“We’ve made Prime delivery faster -- the number of items delivered to U.S. customers with Prime’s free one-day and same-day delivery more than quadrupled this quarter compared to last year,” CEO Jeff Bezos said in a statement.
The company’s Amazon Web Services cloud computing segment reported revenue of $9.954 billion, up from $7.430 billion a year ago, and ahead of Wall Street’s expectation for revenue of $9.84 billion in the segment.
The company also touted its burgeoning streaming service, saying that Prime members watched double the hours of original movies and TV shows on Prime Video than they did last year. The company also noted the 88 nominations and 26 wins at major awards shows that its original content garnered this awards season.
Amazon’s operating cash flow increased 25% to $38.5 billion for the trailing 12 months, compared with $30.7 billion for the trailing 12 months ending in 2018.
Amazon’s shares have been about flat year to date, but Thursday’s beat gave a much-needed boost to the lagging stock.